Reykjavik, the capital of Iceland, is the gateway to this wonderful country, where nature is the undisputed mistress! It is also the first stop on a trip to the land of fire and ice, a destination to which two or three days are usually devoted. In this case, the choice of accommodation becomes crucial: with little time available, better to opt for an area close to the best attractions and things to do!
Here are all our tips on where to stay in Reykjavik!
Useful tips: the best neighbourhoods to stay in
If it is your first time visiting the city or you are only staying for a short time, usually one or two nights, then the best district to stay in is Midborg. This is the central district, also known as Downtown, where the main attractions are located! Packed with clubs and the heart of nightlife, it is therefore perfect for young people and those who want to enjoy a bit of fun. In this regard, the Vesturbær district is also ideal for young people, as there are many clubs, cafés and kiosks.
If you are travelling with your family, we recommend Laugardalur. This is a quiet, residential district, a bit further from the centre but well connected by transport.
Finally, if you are travelling cheap, the best choice is Hlidar, a district full of hostels and budget accommodation.
Suggested areas tosave money: Hlidar
Suggested areas forfamilies with children: Laugardalur
Best areas foryoung people: Midborg, Vesturbær
Best accommodation: We have selected the best hotels, B&Bs and hostels in Reykjavik. Check out our recommendations and book on Booking
If you are in Reykjavik on business or as a one-day stopover to other destinations, consider sleeping near the airport. Find the best solutions and selected hotels on booking.com
Area guide Reykjavik
Reykjavik, despite being a capital city, is truly a city on a human scale! The central area can easily be visited on foot and the main attractions are all close together. Moreover, it only has about 120,000 inhabitants! About one third of Icelanders live here (about 360,000 inhabitants).
The city is divided into 10 districts. The best ones to stay in are the central ones: District 1 (i.e. Vesturbæ), District 2 (i.e. Midborg), District 3 (i.e. Hildar) and District 4 (i.e. Laugardalur).
Areas to avoid: there are no areas to avoid, Reykjavik is an absolutely safe city, even at night. From a touristic point of view, staying one or two nights, we could advise against the districts of Háaleiti, Kringla, Fossvogur and Gerði, only because they are further away from the city centre.
Midborg
Midborg, also known as Downtown, is the heart of Reykjavik. This is definitely the best area to stay in if it is your first time visiting the city or if you are only staying one night. Here you will find some of the city's iconic landmarks: the iconic Hallgrimskirkja Church, the Harpa Concert Hall and the Sun Voyager (or Sólfar, the city's most famous structure). Museums, on the other hand, include the National Museum of Iceland and the unique Icelandic Phallology Museum.
Midborg is also known for its lively nightlife. In fact, it is a lively area at any time of the day, thanks to the many clubs, so it is especially suitable for young people and couples! Especially the streets of Laugavegur, Bankastræti and Austurstræti are the liveliest at night. It is also one of the most expensive areas, where accommodation sells out easily, so we advise you to book as soon as possible!
Finally, by staying here you can get around easily on foot! The main attractions are all close by, as are the many shops and clubs.
Average prices in the district range from around €80.00 for low-cost accommodation to €450.00 for high-budget solutions - compare the selection of the best accommodation on booking
Recommended accommodations
Accommodation | Description |
|---|---|
3-star hotel 140 m from Laugavegur. Bar, free indoor parking, 24-hour reception, car and bicycle rental service. Ideal for couples and families | |
Hostel near the waterfront, 250 m from Laugarvegur. WiFi connection, shared kitchen, restaurant. Private room or dormitory. Ideal for young people | |
Apartment complex 400 m from Hallgrímskirkja. Lounge area, dining area, equipped kitchen. Studio or two rooms. Ideal for couples and small groups | |
4-star hotel 5 min walk from Harpa. Spa and fitness centre, 24-hour reception, restaurant and room service. Ideal for couples |
Vesturbær
West of Midborg is the district of Vesturbær, the traditional and fashionable area of Reykjavik. This part of the capital is characterised by colourful buildings, a traditional atmosphere and the Old Harbour area. Here, you can find attractions such as FloyOver Iceland, the Reykjavík Maritime Museum and the whale museum, the Whales of Iceland. Whale watching tours also depart from here!
The area is characterised by a large presence of breweries, lively clubs, trendy cafés, restaurants with international cuisine and kiosks selling fish and chips. Given these characteristics, it is an area recommended especially for young people, but also for couples and those looking for a lively district close to the centre.
Finally, by staying here you can get around easily on foot. Midborg and the main attractions can be reached with a pleasant walk along the promenade. The area is also served by bus lines 11 (to Seltjarnes), 13, 14 and 15.
Average prices in the district range from around €80.00 for low-cost accommodation to €550.00 for high-budget solutions - compare the selection of the best accommodation on booking
Recommended accommodations
Accommodation | Description |
|---|---|
3-star hotel with tour desk, ticket service, 24-hour reception and airport shuttle. Ideal for couples | |
Hostel 800 m from the Old Port. WiFi, on-site parking and shared bathrooms. Ideal for young people | |
Apartment complex with private parking. Accommodation with fully equipped kitchen, full bathroom. Ideal for couples | |
4-star hotel near the Old Port. Gym, restaurant, lobby with fireplace, cinema area. Ideal for couples and families |
Hlidar
Hlidar is the district to the east of Midborg. It is a residential area within walking distance of the main attractions. It is also home to the Reykjavik Art Museum and not far to the south is the Perlan, from whose terrace you can see the whole city from above!
Reykjavik, like all of Iceland, is a very expensive destination, where it is difficult to go cheap. In Hlidar, however, you can find great deals and is therefore ideal for those who want to save at least a little. In fact, there are numerous cheap hostels and hotels here, without sacrificing location.
Staying here allows you to get around on foot: the Hallgrímskirkja is not far away and the northern part of the district is bordered by a section of Laugavegur, the city's famous street! The district is however traversed by several bus lines!
Average prices in the district range from around €60.00 for low-cost accommodation to €250.00 for high-budget solutions - compare the selection of the best accommodation on booking
Recommended accommodations
Accommodation | Description |
|---|---|
3-star hotel with free parking and car rental service. Souvenir shop, tour desk and bar. Ideal for couples and families | |
Hostel with a futuristic style. Luggage storage, WiFi, free parking, shared bathrooms and kitchen. Sleeps in dormitories. Ideal for young people | |
Apartment complex with kitchenette, flat-screen TV and free WiFi. One or two bedrooms. Ideal for couples or families | |
4-star hotel near Hlemmur Square. Gym, restaurant, parking, bike rental and fitness centre. Ideal for couples |
Laugardalur
Finally, among the best places to stay in Reykjavik is definitely Laugardalur, a wonderful residential district surrounded by greenery. Its name means 'valley of hot springs' and here, in fact, one of the main attractions is the Laugardalslaug open-air thermal baths, accessible all year round! The Hofdi House, one of the oldest houses in the capital, and the city zoo are also located here.
With its tree-lined boulevards, large parks and waterfront promenades, this area is suitable for those seeking tranquillity and families. Especially to the latter: this is in fact the best neighbourhood in the city to stay in with children! You will be not far from the centre but will feel as if you are in the middle of nature.
Finally, by staying here you can get around on foot or by transport. A lot depends on where you are staying: we recommend the area where Hofdi House is located, the partre closest to the centre. From here, you can walk along the promenade to Hallgrímskirkja in 20 minutes.
Average prices in the district range from around €80.00 for low-cost accommodation to €550.00 for high-budget solutions - compare the selection of the best accommodation on booking
Recommended accommodations
Accommodation | Description |
|---|---|
3-star hotel with WiFi, close to the promenade and shops and restaurants. 24-hour reception and luggage storage. Ideal for couples | |
Hostel with restaurant, shared kitchen, luggage storage and WiFi in all areas. Dormitories for 4 to 8 people. Ideal for young people | |
Apartment complex 25 min walk from the centre. Units with private bathroom, equipped kitchen and city views. One or two bedrooms, up to 8 people. Ideal for families and groups | |
4-star hotel 2 km from the centre. Swimming pool and wellness centre, gym, restaurant and free parking. Ideal for couples and families |
Countries near Reykjavik where to stay
With only a few days to spare, sleeping in Reykjavik is definitely the best option. As we have seen, the districts present numerous options, suitable for all travellers.
However, Iceland is a destination that should be visited by car and, if you are planning a trip, you will certainly not stop only in the capital. Therefore, depending on the itinerary you are planning, it may be more convenient, both in terms of cost and location, to consider places to stay close to the capital, which will then allow you to continue your journey to other destinations!
Seltjarnarnes (4.5 km / 10 min): a small town on the edge of the Reykjavik peninsula. It offers beautiful views of the Northern Ocean and is surrounded by nature. Connected by bus line 11 (15 min) - compare accommodation on booking
Mosfellsbær (17 km / 20 min): a small town located halfway between Reykjavik and Thingvellir National Park, one of the main attractions of the Golden Circle, an excellent base for discovering this side of Iceland. Connected by bus line 15 (1 h) - check accommodation on booking
Keflavik (45 km / 45 min): small town with Iceland's main airport. Excellent base for reaching both Reykjavik and attractions such as the Blue Lagoon and exploring the Reykjanes Peninsula. From the airport Flybus Iceland (45 min) - compare accommodation on booking
Selfoss (60 km / 55 min): one of the main towns in South Iceland. Excellent base for exploring both Reykjavik and the Reykjanes Peninsula and places like Vik and the waterfalls of South Iceland. Connected by bus line 4 + line 51 (1 h 30 min) - compare accommodations on booking
